Ukrainian corn and wheat for export to the EU are getting cheaper and cheaper

Since the beginning of December there has been a drop in demand for Ukrainian Corn and Wheat with delivery to the western borders to most destinations and ports in Europe, as Anna Tanskaya, head of the Department of Grain and Oil Markets told APK-Inform.

She noted that the export situation has become more difficult both against the background of power outages and reduced activity of European companies due to long vacation holidays and weekends in Europe, which negatively affects the efficiency of goods handling.

“The impact was influenced by the constant pressures of the domestic economy, expensive and overloaded logistics as well as declining global prices (particularly on the Euronext stock exchange). This was caused by the reduction in supply, the complexity of the elevators and, accordingly, the part-time work of wet Corn somewhat balanced. Some support was provided by the prospect of a reduction in agricultural production in Ukraine next season, as well as a rather difficult situation for farmers given the increasing costs of growing all crops without exception. The larger price drop was limited to the decline in the USDA–Assessment of the global Wheat- and corn production in 2022/23 MG (most recently mainly at the expense of Ukraine – from 31,5 to 27 million Tonnen“said the expert.

A. Tanskaya added that more than 30% of Ukrainian corn is still not harvested in the fields, which raises concerns about the decrease in its qualitative characteristics. Price pressures were further weighed down by active Brazilian corn exports, but the prospect of further deterioration in Argentina's wheat and corn crops due to the worst drought in a decade was further strengthened.

According to last week's results, prices for demand for corn on the border with Poland, Slovakia and Romania in January-February are at 190-215 EUR/Tonne DAP decreased and only with Hungary have 230 EUR/ton DAP reached. Demand prices in the Romanian ports of Konstanz and Dornesti were under pressure, but did not change significantly and amounted mainly to 290-300 EUR/ton DAP and 245-255 EUR/ton DAP and 265-280 EUR/ton DAP for corn and 220-230 EUR/ton DAP.

Source: APKinform (Ukraine)

All news